Artificial Intelligence (AI) has become a topic of our
mainstreams and everydays. The potential of AI enhancing everyday business
activities and strategies hasn’t just sparked the interest of people and
organizations globally, but has initiated rapid implementation.
Artificial
Intelligence and machine learning is already enhancing our lives as consumers,
now it is picking up momentum in supply chain management and logistics.
Supply
Chain and Operations was one of the top areas where businesses are driving
revenue from AI investment. With the volumes of data in supply chains and
logistics growing every day, the need for more sophisticated processing
solutions is becoming more urgent. That’s why many companies are adopting such
AI computing techniques as machine learning, deep learning, and natural
language processing.
AI promises to have a
dramatic impact in four key areas:
Predictive capabilities are helping demand forecasting. When inventory
lags demand, companies suffer losses. AI is ramping up efficiencies in network
planning and predictive demand, allowing merchandisers to become more
proactive. By knowing what to expect, they can adjust the number of vehicles
and direct them to locations where maximum demand is expected. This leads to
lower operational costs.
Chatbots are redefining customer support. AI can
personalize the relationship between customers and logistics providers.
A recent example of personalized customer experience is DHL’s
partnership with Amazon. By activating DHL Parcel “skill” via the Alexa
app, DHL Customers can ask Alexa to connect with Amazon Echo or Echo Dot
smart speakers and confirm their parcels’ status. In the event of any issues
arising during the interaction, Echo users can directly contact DHL for
assistance by its customer-support team.
Smart warehouses are more efficient. A smart warehouse is
a fully automated facility wherein most work is done through automation or
software. In the process, tedious tasks are simplified, and operations become
more cost-effective.
Alibaba and Amazon have already transformed their warehouses through the
use of automation. Amazon recently rolled out machines that automate the job of
boxing customer orders. In Amazon warehouses, robots work alongside humans to
increase productivity and efficiency.
Genetic algorithms are improving delivery times and reducing costs. In the
logistics business, every mile and minute matters. Companies can use a route
planner based on genetic algorithms to map out optimal routes for deliveries.
Because of AI flexibility, companies
are using AI to tackle all sorts of supply chain challenges. The best-known
examples are the deployment of robots and automated guided vehicles (AGVs) in
the warehouse. But there are other utilisations, such as:
- Planning truck-loading to maximize space
- Making pick-to-light warehouse systems more
efficient
- Decreasing order cycles through
fulfillment-source optimisation
- Developing the spatial-awareness capacities of
warehouse robots, using machine learning and computer vision
It is clear that AI has become a
game-changer in enterprise generally but especially in supply chain. With
today’s fierce competition for supply chain superiority, the logistics industry
could well become the testing ground for even more sophisticated AI-powered
technologies.
In the near future, AI will set a new standard of efficiency across
supply-chain and logistics processes. The game is changing quickly, creating a
“new normal” in how global logistics companies manage data, run operations and
serve customers, in a manner that’s automated, intelligent, and more efficient.
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